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DMO: Domestic debt servicing increased by over N247bn in 2017
The rising debt profile of the Nigerian government cost it extra N247.46 billion in domestic debt servicing in 2017, statistics from the Debt Management Office (DMO) have shown.
According to statistics, the Federal Government spent a total of N1.23tn to service its domestic debt in 2016. However, by 2017, the cost of servicing the debt had gone up to N1.48tn, translating to additional N247bn more within the one year period or an increase of 20.1 per cent in the cost of domestic debt service.
A document from the DMO indicates that “The FGN’s Domestic Debt service as at December 31, 2017, was N1, 476.22bn, compared to N1, 228.76bn in the corresponding period of 2016, representing an increase of N247.46bn or 20.14 per cent.
“This cost comprised principal repayment of N25bn and interest payment of N1, 451.22bn.
“By instrument-type, the debt service for FGN bonds was 66.57 per cent of the total debt service payment, while payments in respect of the FGN Savings Bond, Nigerian Treasury Bills, and Treasury Bonds were 0.03, 30.15 and 3.25 per cent, respectively.
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“Further analysis showed that the FGN’s domestic debt service payments rose steadily from N794.10bn in 2013 to N1, 476.22bn in 2017, as a result of the growth in domestic debt stock with relatively higher interest rates.”
Between 2013 and 2014, the cost of domestic debt servicing rose from N794.10bn to N865.81bn. This meant that the cost of servicing rose by 71.71bn or 9.03 per cent.
By 2015 however, the cost of domestic debt servicing hit the trillion naira mark, rising from 1,018.13bn. This showed that cost rose by 152.32bn, reflecting 17.59 per cent increase. By 2016, the cost went up by 210.63bn, reflecting 20.69 per cent.
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